Australia's largest book retailers, RED group Retail, collapsed on 17 February 2011. The RED group Retail owns

Question:

Australia's largest book retailers, RED group Retail, collapsed on 17 February 2011. The RED group Retail owns 103 Angus & Robertson bookshops and 26 Borders stores in Australia. Subsequent to the collapse, one Border's outlet and 37 Angus & Robertson branches were closed, making 321 staff redundant.
Subsequent to the announcement of financial difficulties of RED group Retail, Borders and Angus & Robertson book stores refused to honour the of gift vouchers. 'Customers attempting to use gift vouchers are being told they have to spend double the value of each voucher' (ABC News, Friday 18 February 2011).
It was reported in the financial press that RED group Retail had a total of $6.4 million in cash, and inventory on hand of $119.9 million when it collapsed. Further, it had employee benefits (amounts owed to employees for annual leave) of $7.8 million and unsecured creditors of$44 million.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...